RFI_NASM_Food_Service__(for_post_4-25-19).pdf

Smithsonian Institution

Request for Information (RFI)

#M-19000410-0000

Food Service Facilities

At the

National Air and Space Museum

Independence Ave & 6th St SW, Washington, DC 20560

April 25, 2019

I. INTRODUCTION

A. About Smithsonian

The Smithsonian Institution is a non-profit trust instrumentality that was created by act of

Congress of the United States in 1846. The Smithsonian is the world’s largest museum and research complex consisting of 19 museums and galleries, the National Zoological Park and nine research facilities. In 2017 30 million people from around the world visited the museums and the National Zoo; there were nearly 151 million visits to www.smithsonian.org. The total number of objects, works of art and specimens at the

Smithsonian is estimated at more than 145 million. The Smithsonian collections are the basis for research, exhibitions and public programs in the arts, history and culture, and the sciences. The Institution’s mission is the “increase and diffusion of knowledge.”

The Smithsonian’s statement of values and code of ethics require that Smithsonian’s revenue-generating activities support the Smithsonian mission and protect the

Smithsonian's reputation, integrity, and independence. Smithsonian’s revenue-generating activities must be consistent with the Smithsonian mission, culture, governance, and status as a trust instrumentality of the United States and a tax-exempt organization.

B. About Smithsonian Enterprises

Smithsonian Enterprises is a division of the Smithsonian Institution. Smithsonian

Enterprises operates retail, media, product development, licensing, travel, SmithsonianStore.com, and other services which promote the Smithsonian mission while generating an essential source of unrestricted funding for the Institution. By providing products and services that reflect the mission of the museums and research centers, Smithsonian Enterprises plays a critical role in advancing the Institution’s mission: the increase and diffusion of knowledge.

Smithsonian Enterprises’ Retail Group manages 13 restaurants with a variety of dining experiences; 2 IMAX theatres with 1.3 million annual attendees; simulators offering thrilling experiences to over 500,000 visitors; and 27 museum retail stores handling over

2.3 million annual transactions.

With over 7.3 million electronic messages marketing our various businesses, Smithsonian

Enterprises continues to grow and reach new consumers of every generation throughout the world.

II. PROJECT SCOPE

This is a request for information (“RFI”) only and does not constitute a request for proposals or a commitment, implied or otherwise, that the Smithsonian will issue a solicitation for this project.

The Smithsonian Institution has determined the restaurant building located on the east end of the National

Air and Space Museum in Washington D.C. has exceeded its functional usefulness. The Institution is interested in identifying whether potential companies are capable of bearing the cost for the replacement of the existing restaurant structure and management & operation of the food service facility located at the

National Air and Space Museum, with the goal to provide approximately 700 seats on the first floor and

100-200 seats in a second-floor restaurant. The Smithsonian’s goal is to have an approved design plan in place for the rebuilding of the facility and begin work on or about January 2022, with food service operations to commence once the renovation is complete in June 2025. The Smithsonian contracted with an outside company to conduct a feasibility study for the replacement of the restaurant building in

December 2018. The cost for the project could be substantial depending on design decisions.

This RFI is being used to gather market research for the Smithsonian to make decisions regarding procurement strategies for the replacement, management and operation of the restaurant. The Smithsonian is seeking information from concessions operators, developers and other appropriate organizations about the industry’s ability to bear the cost of replacement of the existing restaurant and manage and operate the restaurant, and how such contracting arrangements are typically structured. The Smithsonian anticipates issuing a solicitation in late 2020 or early 2021 to select an operator for the renovation, buildout, management and operation of the restaurant.

III. PROJECT DETAILS & CONSIDERATIONS

A. The project is anticipated to encompass the following:

1. Demolition of the existing building

2. 22,322 GSF renovated basement

3. 27,863 GSF new building over 2 floors

a) 20,922 GSF first floor

b) 6,941 GSF second floor (excludes roof plaza)

c) 1,500 SF roof plaza

4. 849 total seats

a) 719 first floor seats

b) 130 second floor seats

5. $16,100,000 projected annual revenue

The spaces identified above are referred to collectively herein as the “Food Service

Facility”). Additional information in the form of an Appendix to the RFI is attached hereto in Appendix 1.

B. NASM’s unique needs and mission must be considered by the operator ultimately selected to develop the concept.

Overall Food Service Goal: The overriding objective for NASM food service is to satisfy the diverse needs and tastes of NASM visitors and staff and be sourced as fresh and local as possible. Options for those with allergies or sensitivities are important as is excellent customer service. The Smithsonian anticipates that the selected operator must be able to serve the NASM’s group sales business which serves groups from 30 – 200. This is a growth area for the museum and food offerings must be high quality and at a reasonable price point. In house catering for daytime events or lunches is desired, and the museum anticipates that the selected operator will have exclusive rights to provide catering for special events and evening catering, with limited exceptions. The selected operator must support NASM’s drive for sustainability along with established recycling programs. Note that the Smithsonian will ban the sale of beverages in single use plastic bottles. While understanding the need to feed the masses, the selected operator is expected to make the overall dining experience positive and rewarding. Offerings should be innovative and service should be welcoming. The Food Service Facility is expected to be open at all hours when NASM is open to the public, 10:00 am to 5:30 pm.

C. Type of Contract and Term. The Smithsonian anticipates a long-term contract with the selected operator for management and operation of the Food Service Facility, with options to extend. Depending on how the renovation and buildout of the Food Service Facility is structured, a separate design and construction agreement(s) with the selected operator may also be required.

D. Catering. Smithsonian anticipates that the operator selected to develop, manage and operate the Food Service Facility will have the exclusive right to provide catering services at NASM, with limited exceptions, such as events held by Smithsonian donors who may wish to select their own catering companies. Outside caterers will not have access to the

Food Service Facility. If the selected operator will be providing catering services for an event or meeting, a separate contract will be executed specifically for those catering services.

E. Branding. If and when the Smithsonian issues an RFP for the project, the Smithsonian anticipates considering proposals for a Food Service Facility that is either branded or non-branded.

F. Café Concepts. NASM anticipates working with the selected operator to provide interior décor consistent with the Air and Space theme. While NASM would not be able to provide actual artifacts, NASM would be able to provide design assistance and non-artifact items that would be available for the buildout.

G. Additional Food Service Locations and/or Mobile Carts. The Smithsonian anticipates that the project will include building an outside restaurant or approved trailer operation on the west end of the NASM building and locations around the build to operate approved food carts. Mobile carts, where agreed upon, would be provided by the selected operator and the selected operator would operate them according to an agreed upon schedule.

H. Required Capital Investment. The Smithsonian anticipates structuring an RFP for the project with a requirement that the selected operator provide a capital investment to fund the complete renovation and build-out of the Food Service Facility. As envisioned, it would be the responsibility of the selected operator to finance, build and operate the Food

Service Facility.

The National Air and Space Museum is a federal building. Compliance with the Davis-

Bacon Act, 40 U.S.C. §3141 et. seq. 2002) will be required. Smithsonian requirements for construction contractors and Smithsonian special conditions for A/E and construction projects will be included as part of the RFP package, if and when an RFP is issued.

The Food Service Facility design and all renovation/modifications will need to comply with the Smithsonian design and construction review and approval process coordinated by

Smithsonian Facilities (refer to the Smithsonian Facilities Architect-Engineer Information

Center online at http://www.sifacilities.si.edu/ae_center/index.asp for additional information). The scope of work, architect/engineering firm, general contractor, Facility design, drawings and specifications, and associated budget will be subject to the mutual agreement of the Smithsonian and the selected operator, and the contract for design services will require that the architect design to the agreed upon budget.

I. Services and supplies. The Smithsonian anticipates that the selected operator would be required to provide the following services and supplies for operation of the Food Service

Facility, as well as any other items that may be necessary to meet the selected operator’s obligations.

1. Services and supplies furnished by the selected operator are anticipated to include but are not limited to:

a. All food, beverages;

b. Adequate staffing and management to effectively manage the food service operation;

c. Sanitation in all food service areas and required cleaning supplies;

d. Point of Sale Systems (including computers that are attached thereto, automated credit-card readers, cash counting equipment, and wireless point of sale capability at all satellite locations such as mobile carts, and any

Smithsonian-approved self-service check-out stations). Note that all systems must be PCI compliant and the Smithsonian Technical Review

Board must review and approve the selected operator and its systems for security, privacy, and accessibility. (Approval requires adherence to standard industry best practices and applicable Federal guidelines.);

e. Computers/software that are not cash register related;

http://www.sifacilities.si.edu/ae_center/index.asp

f. Electricity, gas, water, sewage, and HVAC costs (through reimbursement to

Smithsonian);

g. Extermination services costs (through reimbursement to Smithsonian);

h. Grease storage management and disposal;

i. Inter-unit communication devices, (e.g. walkie talkies, intercoms, or two-way radios and telephones, if necessary);

j. Laundry and linens;

k. Equipment maintenance and repairs/replacements;

l. Office equipment and supplies;

m. Promotions and marketing efforts for the operation, subject to Smithsonian approval;

n. Service ware, stainless steel, plates and glassware (successful offeror will not offer any beverages in single use plastic containers; Grab-and-go food packaging will be subject to Smithsonian review and approval);

o. Signs and menu board, to be approved by the Smithsonian;

p. Small wares, including non-disposable plates and utensils, bowls and glasses;

q. When dishwasher units are not functioning, the restaurant operation must provide compostable service ware (forks, knives, spoons, plates, straws, etc.) and such compostable service ware must meet Smithsonian-established standards. Plastic straws are not permitted for use in the Facility.

r. Smithsonian staff and public accommodations for young children and individuals with disabilities;

s. Telephone and facsimile;

t. Trash removal, composting, and recycling;

u. Cost of grease duct cleaning will be the selected operator’s responsibility.

Whether or not the selected operator will be responsible for the grease duct cleaning contract (in addition to the cost) is still to be determined. Grease duct cleaning will be required to meet Smithsonian standards established in accordance with Fire Code NFPA 96 (National Fire Protection Association).

v. Cost of jetting drain lines and grease trap maintenance will be the selected operator’s responsibility.

w. Selected operator will be required to participate in the NASM recycling program for cardboard

2. Smithsonian. The Smithsonian anticipates providing only the following:

a. Electricity, gas, water, sewage, chilled water, steam and HVAC (usage costs to be reimbursed by the successful offeror); and

b. Extermination services (costs to be reimbursed by the successful offeror).

c. Smithsonian Facilities will provide permitting and design review service as a reimbursement.

J. The selected operator will be required to comply with all applicable federal, state (including the District of Columbia), and local equal opportunity, wage and tax laws covering its employees; shall be responsible for its labor relations with any trade or union representing its employees; and shall be responsible for resolving all disputes between itself and its employees or any union representing such employees.

IV. RFI QUESTIONS

Smithsonian is requesting responses to the following questions (to be discussed in an in-person meeting):

1. Does the interested firm have the financial wherewithal to complete a project of this scale?

2. What is the likely contractual term needed to recover the financial investment for a project of this scale?

3. Will firms competing for this activity agree to provide a bid based on a minimum annual guarantee (MAG), or percentage of gross revenue, whichever is higher?

4. What is the preferred contractual methodology for a project of this scale? (ie: design-bid, design-bid-build, construction manager at-risk (CMAR) etc.?

5. What does your firm see as unique characteristics presented by building a restaurant at this location (both favorable and unfavorable)?

6. Of the conceptual designs and information provided, what is missing and needed in order for the Smithsonian to initiate a competitive bid process?

7. Is the opportunity to provide event catering in the Museum of particular interest? If so, then what additional infrastructure would the proposed facility require?

8. Is the concept of a rooftop event space worth the investment?

9. What effect does the relative lack of residential “nightlife” in the immediate area around the museum have on the design and viability of this potential project?

10. Are there other business opportunities or diverse revenue streams that a proposing firm would like to include in the design of a new restaurant structure? (ie: retail, simulators etc.).

11. The museum will likely build an outdoor “STEAM Park” in the vicinity surrounding the restaurant footprint. Will “through the window” food take-out sales to serve this clientele be desirable?

12. Does the interested firm or firms have experience with design and building requirements within Washington D.C., federal buildings, and/or Smithsonian Institution buildings?

13. Would an exclusivity commitment be required? If so, what would be the desired structure of an exclusivity grant?

V. RESPONSE INSTRUCTIONS.

A. Scheduling Meetings. Written responses to the above questions are not required.

Representatives of Smithsonian Enterprises and NASM would like to meet with you to discuss your thoughts on the questions above and any other information you would like to share. Please send an email to the attention of Susan Engelhardt at engelhardts@si.edu by

2:00 P.M. E.S.T. on or before May 9, 2019 to indicate whether your firm would be willing to meet with us. Include “RFI Response” in the subject line. We hope to schedule these meetings during the week of May 20th, if possible.

B. Questions. Inquiries regarding this RFI may be submitted by email to the attention of

Susan Engelhardt at engelhardts@.si.edu.

C. Although all comments received will be considered for inclusion in any possible procurement action associated with the project, the Smithsonian makes no commitment to include any particular recommendations. Respondents will not be notified of the results of the review.

D. The Smithsonian is not responsible for paying any costs associated with a response to this

RFI. This RFI does not obligate the Smithsonian to issue a solicitation or enter into any agreement, nor shall it be construed as authorization for companies to proceed with any work directly or indirectly related hereto.

VI. ATTACHMENT

Appendix 1 – Museum Visits, Restaurant/Café Sales History, and Two-Year History of Utility and Pest

Control Expenses mailto:engelhardts@si.edu mailto:engelhardts@.si.edu

APPENDIX 1

Museum Visits*

2016- 7,305,348 2017- 7,220,112

Restaurant/Café Sales History

2016- $9,987,690 2017- $9,409,236

Two-Year History of Utility and Pest Control Expenses

Utilities 2016- $658,692.10 2017- $644,076.16

Pest Control 2016- $26,947.44 2017- $24,642.80

*Because Smithsonian museums are free, we cannot base our visit tallies on a number of tickets sold.

Smithsonian guards use hand clickers to count everyone entering the museums through public entrances during the hours the museums are open. The counts sometimes include staff, as well as visitors who leave the museum and return. For these reasons, we refer to the numbers above as “visits” rather than “visitors”.